NEAR Protocol (NEAR) is currently trading at $2.13, facing a decisive retest of a descending trendline resistance. This comes after forming a clear double bottom at $1.85, a pattern often signaling potential trend reversal and exhaustion, particularly when accompanied by increased trading activity.
For bulls to confirm a sustained upward movement, NEAR must decisively breach this resistance level. Failure to do so could invalidate the reversal thesis, leaving NEAR vulnerable to further downside. The upcoming trading sessions will be crucial in determining its direction.
On July 4th, Binance's trader positioning revealed a heavily lopsided sentiment, with long accounts dominating at 72.19% and pushing the Long/Short Ratio to 2.60. This indicates aggressive bullish speculation for a breakout. However, crowded optimism often introduces liquidity risk; if the price fails to break out, this overleveraged structure could lead to forced liquidations.
Santiment's Weighted Sentiment for NEAR climbed to +0.427 after a period in negative territory, reflecting a temporary return of trader confidence. Historically, sustained positive sentiment supports upward moves, while short-lived spikes can precede reversals. For momentum to be maintained, sentiment needs to remain elevated. A dip while the price remains flat could signal a local top.
Funding Rates on Binance flipped to +0.01% on July 4th, meaning longs were paying shorts, which supports bullish momentum. The rate is currently modest, suggesting healthy positioning rather than excessive speculation. However, a rapid increase in funding, without a corresponding price breakout, could indicate overheating and risk a squeeze. This data suggests cautious optimism, but traders should watch for rapid spikes that might foreshadow exhaustion.
NEAR saw a net outflow of $2.22 million from exchanges on July 4th, indicating that investors are withdrawing tokens from centralized platforms. This is generally interpreted as a holding behavior, reducing near-term selling pressure and building a stronger base for breakout attempts. A sustained outflow trend would strengthen the bullish case, while a sharp return of exchange inflows would weaken it.
Despite the overall optimism, liquidation data showed long positions suffered $269.99K in losses on July 4th, significantly higher than the $6.19K in short liquidations. This imbalance suggests that some bulls may have entered too early, getting caught in a local pullback. While not catastrophic, this event highlights the fragility of the current uptrend. Repeated imbalances could erode confidence and delay breakout attempts.
NEAR's bullish reversal setup is supported by strong sentiment and aggressive long positioning. However, elevated liquidations and an unconfirmed breakout signal caution. A decisive breakout above the descending trendline, coupled with sustained spot outflows and stable funding rates, would strengthen the bullish case. Until these confirmations, NEAR remains in a critical decision zone.
July 2025, Cryptoniteuae